5% GST Rate for Restaurants/ Job Work on Handicrafts notified by CBEC

Notification for reduced GST Rate of 5% for Restaurants/ Job Work on Handicraft Goods, applicable w.e.f. 15 Nov. 2017, issued by CBEC

The CBEC has issued Notification for reduced GST Rate of 5% for standalone restaurants/ 18% for other restaurants (without ITC) and for reduced GST Rate of 5% for Job Work on Handicraft Goods, applicable w.e.f. 15 Nov. 2017, in line with recommendations of the 23rd Meeting of the GST Council held on 10 Nov. 2017.

GST Council has recommended a uniform tax rate of 5% for Restaurants (standalone/ in hotels) without ITC, as under:

i) All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC. Food parcels (or takeaways) will also attract 5% GST without ITC.

ii) Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.

iii) Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.

iv) Outdoor catering will continue to be at 18% with full ITC.

Related Notifications issued by CBEC are as under:

5%/ 18% GST Rate for Restaurants from 15 Nov. 2017: CBEC Notification 46/2017 Central Tax Rate dt. 14 Nov. 2017

5%/ 18% GST Rate for Restaurants from 15 Nov. 2017: CBEC Notification 48/2017 Integrated Tax Rate dt. 14 Nov. 2017

5%/ 18% GST Rate for Restaurants from 15 Nov. 2017: CBEC Notification 46/2017 UT Tax Rate dt. 14 Nov. 2017

One Response

  1. KIRIT SHAH

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